The US has a National Debt that exceeds $27 trillion and a budget deficit that is well over a trillion dollars. If US decides to cover the budget deficit through money creation (which leads to inflation and dollar depreciation), what are the impacts on: A) Domestic firms that use 100% domestic content and export their products, B) Domestic firms that use less than 100% domestic content that sell exclusively in the US, and C) The consumers who buy goods that have less than 100% domestic content?

The US has a National Debt that exceeds $27 trillion and a budget deficit that is well over a trillion dollars. If US decides to cover the budget deficit through money creation (which leads to inflation and dollar depreciation), what are the impacts on: A) Domestic firms that use 100% domestic content and export their products, B) Domestic firms that use less than 100% domestic content that sell exclusively in the US, and C) The consumers who buy goods that have less than 100% domestic content?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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